Apollo’s 2,165 May 2026 $105 Puts Trade Signals 16.6% Safety Margin
An institutional investor sold 2,165 May 2026 $105 puts on Apollo for $3.30, collecting $714,450 and securing a 16.6% margin of safety with a $101.70 break-even. The firm targets $275 billion in 2026 origination volume, trades at a forward P/E of 14x and has committed $3.5 billion to AI infrastructure lending.
1. Put Trade Execution
A large institutional sale of 2,165 May 15, 2026 $105 put options at $3.30 generated $714,450 in premiums and secures a 16.6% margin of safety, with a break-even strike at $101.70 below current levels.
2. Origination Target and Valuation
Apollo aims for $275 billion in annual origination volume by 2026 across credit, private equity, infrastructure and real estate markets. The stock trades at a forward P/E of approximately 14x projected earnings, undercutting peers while analysts forecast 25% annual earnings growth through 2027.
3. AI Infrastructure Lending Pivot
The firm has allocated $3.5 billion to finance AI infrastructure, notably supporting xAI initiatives, signaling a shift from distressed debt to technology lending. This strategic pivot is expected to drive fee-related earnings growth as high-profile infrastructure deals close.